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Softening demand for steel pressures iron ore futures

By: SteelBis Research

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Iron Ore futures at the Dalian Commodity Exchange dipped on Thursday, December 23, 2021.

The most actively traded iron ore contract for May 2022 delivery was down 0.6% on the day to close daytime trade at 692 yuan a tonne, over a tepid growth outlook about the country’s property and infrastructure sectors going into 2022, which account for the lion’s share of domestic steel output.

In the spot market, prices of 62% Fe Fines fell $2.25 a tonne on the day to $123.56 a tonne CFR, while 65% Fe Fines were assessed at $138.68 per tonne CFR China down $0.78 from the previous day.

Iron Ore prices have to an extent regained previous losses incurred this year during December, however, it is expected that weakness with regards to both prices and demand is likely to persist as the construction off-season in China is compounded by power rationing and efforts to curb emissions will likely dampen steel production. Chinese crude steel output slipped 3.2% in November 2021, its seven straight declines this year.

 

SteelBis Researc

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